Abstract

In this work we made an empirical application of the model of Romer (1993) for the 32 states of Mexico on period 1990-2000, in order to determine if this country faces a gap of physical goods or a technological gap in the ample sense (that is to say, that inlcluye knowledge and ideas). We found that in the indicated period, Mexico faces both gaps, and therefore, it can take advantage from the direct foreign Investment to cover both.